The NZD was the worst performing G10 currencyovernight, shunting 1.0% lower against the USD, to0.8560 this morning. The sharp fall in yesterday morning’s Global Dairy Auction certainly contributed to the negative sentiment toward the NZD. Later in the morning,the ANZ Commodity Price Index eased by 0.1% m/m inMarch, following the record high in February. World pricesremain nearly 14% higher than they were a year ago, butwe expect the price of NZ’s commodity basket to declinethrough the year. We continue to project that NZ’s termsof trade will peak in Q1 (with that data due in early June).
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